Chapter 19 Questions

Chapter 19 Questions - Chapter 19 Questions 1. In what...

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Chapter 19 Questions 1. In what transactions do consumer protection laws apply? The transactions that consumer protection laws apply to are transactions that take place between a business and a consumer. People who buy or rent things for personal use from a business are protected by these laws. Federal consumer protection laws state that “unfair or deceptive acts or practices in or affecting commerce are hereby declared unlawful”. 2. What acts are declared unlawful by the Federal Trade Commission Act? The acts that are declared unlawful are those that are deceptive or unfair. The act defines commerce as being among the several states or with foreign nations. The act applies to businesses that sell real estate, goods, or services in interstate commerce or that somehow affect intrastate commerce. Intrastate commerce is not ruled by the FTC act. 3. Name and describe four unfair or deceptive acts. a. Fraudulent misrepresentation i. It is unfair or deceptive for a seller to act or to make a statement that has the effect of deceiving the buyer. It is also deceptive to fail to disclose information to a buyer any fact that would cause the buyer to not enter into the contract. b. Unordered Merchandise i. Except for free samples that are heavily and conspicuously marked as such and merchandise mailed by charitable organizations soliciting contributions. It is a violation of the postal law and the FTC act to send merchandise through the mail to people who did not order it. c. Bait and Switch Schemes i. A bait and switch scheme is an alluring but insincere offer to sell a product or service that the advertiser in truth does not intend or want to sell. d.
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This note was uploaded on 06/03/2008 for the course BUS 2333 taught by Professor Grafton during the Spring '08 term at Oklahoma State.

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Chapter 19 Questions - Chapter 19 Questions 1. In what...

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